Iraq's CPI inflation holds at 2.6% y/y in August

By bne IntelliNews September 18, 2015

Higher housing prices were mitigated by slower food price growth, helping keep Iraq’s CPI inflation unchanged at 2.6% y/y in August, the same as a month earlier, data from the statistics office showed. Slower private consumption post-Ramadan also helped anchor price growth in Iraq during the month.

In monthly terms, the CPI rose 0.7% in August, easing from a 1.0% m/m increase in July.

As to core inflation, which excludes volatile components like food and energy, it accelerated to 1.8% y/y in August from 1.4% y/y the month before on a 0.5% m/m growth.

Prices of food and non-alcoholic beverages, which have a 30% weight in the CPI basket, rose 2.1% m/m in August on unfavorable seasonal factors but the annual growth cooled to 4.3% from 4.9% y/y in July.

Fruits charges grew 8.6% y/y in August, slowing from a 11.2% annual hike a month earlier while those of fresh vegetables increased 7.8% y/y.

Alcohol and tobacco prices grew 2.1% y/y, speeding up from a 1.0% annual rise in July. Prices of sewing clothes services grew 5.4% y/y during the month.

As to housing and utilities charges, they grew 3.3% y/y in August, inching up from 3.0% y/y in July. The index was lifted by higher rent prices (up 3.4% y/y in August compared to 3.1% y/y a month earlier). Transport charges fell 1.7% y/y in August on lower oil prices and high base effect. Telecom prices rose 4.4% y/y and those of education grew 4.7% y/y. 

Related Articles

Erdogan warns Iraqi Kurds will lose “opportunities” if independence vote proceeds

Turkish President Recep Tayyip Erdogan has warned the Iraqi Kurds that it is in their interests to call off their planned September 25 independence referendum because it “may lead to a process that ... more

Russia’s Rosneft mulls Kurdistan-Turkey-Europe gas pipeline

Russia’s Rosneft is exploring the possibility of building a 30bn cubic metre (bcm) pipeline that would from 2020 deliver natural gas supplies from the Iraqi Kurdistan region to Turkey and ... more

‘Fruit juice moment’ indicates Iran making serious trade incursions in blockaded Qatar

An image of a ‘Produced in Iran’ fruit juice brand aboard a Qatar Airways flight might not appear at all exciting but to Iranians discussing the trade opportunities generated for the Islamic ... more